Cover warrant (CW) is a product which issued and listed by Security company. Characteristics of Cover warrant are similar to an option contract in derivative market. The owners of cover warrants would have right (but have no obligation) to buy (or sell) the Underlying asset (stock) at a pre-determined price (Strike), on or before a specified expiry date in future.
This is a product with high leverage, low cost for capital, moreover, it is also the limited loss which had determined from the beginning. Easy trading mechanism similar to stock trading. With the strength of financial potential and high qualification human resource, KIS continues to be one of the CW issuers in Vietnam and provide the best trading utilities for investors.
The underlying asset would be stocks, indices, or ETF which were met the criteria of State Securities Commission of Vietnam (SSC).
In the beginning, the underlying asset of Cover warrant in Vietnam market would be stocks of VN30 batch and meets the criteria of Capitalization, Liquidity, Free-float and Business result.